Unisys agrees new terms for iPSL payments processing venture
24 January 2006 | 7939 views | 0
IT services group Unisys says it has renegotiated terms with partner banks for its outsourced cheque and payments processing joint venture in the UK, which will boost its revenue by $150m over the next four years.
Unisys set up the Intelligent Processing Solutions Ltd (iPSL) unit in partnership with high street banks Lloyds TSB and Barclays in 2000. HSBC later acquired a stake in the venture in 2001.
Last year Unisys was reportedly looking to renegotiate its 51% stake in the venture following claims that the unit had become a major drag on its margins.
Unisys now says it has managed to redraw terms with partner banks which include, among other things, new tariff arrangements. This is expected to result in an increase in revenue to Unisys of approximately $150m over the 2006-2010 timeframe.
In a statement, Joe McGrath, president and CEO of Unisys, says: "The new agreement enables our joint venture with the shareholder banks to continue serving as the largest cheque and payments processing supplier in the United Kingdom."